What are Pacific Premier Bancorp Inc's Business Segments?
Franchise Lending. We originate C&I loans to franchises in the QSR industry
nationwide including financing for equipment, real estate, new store development,
remodeling, refinancing, acquisition and partnership restructuring.
Commercial Non-Owner Occupied Real Estate Lending. We originate and purchase
loans that are secured by CRE, such as retail centers, small office and light
industrial buildings, and mixed-use commercial properties that are not occupied
by the borrower and are located predominantly in California. We also make loans
secured by special purpose properties, such as hotels and self-storage facilities.
Pursuant to our underwriting practices, non-owner occupied CRE loans may be
made in amounts up to 75% of the lesser of the appraised value or the purchase
price of the collateral property. We consider the net operating income of the
property and typically require a stabilized debt service coverage ratio of at
least 1.20:1, based on the qualifying loan interest rate. Loans are generally
made for terms from 10 years up to 25 years with amortization periods up to
25 years.
Warehouse Repurchase Facilities. We provide warehouse repurchase facilities
for qualified mortgage bankers operating principally in California. These facilities
provide short-term funding for one-to-four family mortgage loans via a mechanism
whereby the mortgage banker sells us closed loans on an interim basis, to be
repurchased in conjunction with the sale of each loan on the secondary market.
We carefully underwrite and monitor the financial strength and performance of
all counterparties to the transactions, including the mortgage bankers, secondary
market participants and closing agents. We generally purchase only conforming/conventional
(Federal National Mortgage Association (“FNMA”), Federal Home Loan
Mortgage Corporation (“FHLMC”)) and government guaranteed (Federal
Housing Administration (“FHA”), Veterans Administration (“VA”)
and U.S. Department of Agriculture (“USDA”)) credits, and only after
thorough due diligence including sophisticated fraud checks.
One-to-Four Family Real Estate Lending. Although we do not originate first
lien single family mortgages, we occasionally purchase such loans to diversify
our portfolio.
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